Homeowner guide
Contractor red flags and scam warnings (Colorado)
General info only. Check with a licensed pro and your local building department.
Warning signs of contractor fraud, from the Colorado Attorney General and Stop Fraud Colorado.
| Topic | What the source says | Source |
|---|---|---|
| Red flags | Going door-to-door for customers, especially after a hailstorm; offering free or low-cost work; high-pressure tactics. | Official page checked 2026-10-30 |
| Money red flags | Asking for more than 10% of costs up front, or payment in cash, gift cards or cryptocurrency. | Official page checked 2026-10-30 |
| Permits | A contractor who refuses to pull required local permits is a warning sign. | Official page checked 2026-10-30 |
| Financing | It could be a sign of fraud if a contractor pushes financing through a lender they refer you to. | Official page checked 2026-10-30 |
| Bids | Get bids from at least three contractors before signing. | Official page checked 2026-10-30 |
| Roof inspections | Never let an uninvited contractor inspect your home or roof. | Official page checked 2026-10-30 |
| Payments | Make partial payments as specific work is completed to your satisfaction. | Official page checked 2026-10-30 |
| Roofing contracts | Colorado law says a roofing contract must list dates, costs, contact info, the surety and liability insurer, your right to cancel within 72 hours if your insurer denies the claim, and a bold statement that your payment is held in trust until materials are delivered or most of the work is done. | Official page checked 2026-10-30 |
| FTC: door-to-door | The FTC says scammers knock on your door because they are "in the area," say they have materials left over from another job, and pressure you for an immediate decision. | Official page checked 2026-10-30 |
| FTC: money and permits | The FTC lists asking you to pay everything up front or only in cash, asking you to get the building permits, and steering you to a lender they know as scam tactics. | Official page checked 2026-10-30 |
| FTC: the contract | Before signing, the FTC says the contract should list the contractor's name, address, phone and license number, start and finish dates, any promises made, and your right to cancel within three business days if signed at your home. Fill in every blank. | Official page checked 2026-10-30 |
| FTC: after storms | The FTC says never sign your insurance check over to a contractor, and never pay by wire transfer, gift card, payment app, cryptocurrency or cash. FEMA does not charge application fees. | Official page checked 2026-10-30 |
| If you were scammed | Report a contractor who took money and did not do the work to local police, and file a complaint with the Colorado Attorney General. Stop Fraud Colorado: 800-222-4444. | Official page checked 2026-10-30 |
Not confirmed yet
- Unknown Exact roofing-contract law citation (the AG alert does not give the statute number).
- Unknown Whether the 2020 AG alert is still the newest version.
Checked 2026-10-30. General information, not legal or tax advice. Rules change — confirm with the source. Report an error.